By Ben Ndubuwa…..
There were strong indications that Oil prices showed slight increase yesterday as Nigeria Brent crude inched up by 4.6 percent to $21.39 per Barrel reversing some of the losses posted previously after storage in the United States rose less than expected.
Brent Crude, the benchmark for Nigeria’s oil grades, went up by 4.6 percent about 93 cents to $21.39 a barrel, further increasing the 2.3 percent gain posted early in the week.
Just like a top OPEC Minister from North Africa predicted couple of days back that oil market may recover faster post COVID-19 there are optimism that demand will go up as some countries in Europe and some U.S. cities prepare to ease lockdown
U.S. West Texas Intermediate (WTI) crude rose to a high of $14.40 per barrel, up by 15.4 percent. The gain reduced the 27 percent fall it recorded in the first two days of the week.
According to market report NNPC is said to be offering cargoes of Bonny Light and Qua Iboe, two of the nation’s main grades, at nearly $4 per barrel below Dated Brent, or close to $10.
The crude inventories of the U.S. expanded by 10 million to 510 million barrels in one week to 24th April according to American Petroleum Institute compared to experts’ forecast of a 10.6 million build.